Events that rattled the financial world this week underscored the relevance of the Missouri state treasurer’s race.

The Republican candidate from Savannah, Mo., said he sees the Lehman Brothers bankruptcy filing and takeover of Merrill Lynch as a sign of what happens when the greed on Wall Street takes over, where irresponsible business practices ran companies into the ground.

Both Sen. Brad Lager and his Democratic challenger, Rep. Clint Zweifel, of Florissant, said the need for a strong treasurer becomes that much greater in the context of the shaky economic climate.

Mr. Zweifel said it’s imperative the state’s next treasurer make prudent decisions and create accountability for state contracts and maintain the state’s AAA bond rating to keep something similarly dark from happening to Missouri’s finances.

“It’s critical we have someone that brings competence to the office and restores confidence in Missouri’s investments,” Mr. Zweifel said.

Mr. Lager warned against the government’s likely knee-jerk reaction to this week’s failures in New York City — more regulation.

“I think it’s important we proceed in a cautious manner that doesn’t stifle any entrepreneurs from their innovation and creation,” he said.

The treasurer authorizes all state payments and is in charge of balancing accounts as Missouri’s chief financial officer and the government’s banking director.

The treasurer identifies funds that exceed what’s needed for operating expenses and then invests those funds in interest-bearing time deposits in various institutions, according to Treasurer Sarah Steelman’s office.

“The primary responsibility is to invest the people’s money safely and wisely,” Ms. Steelman said.

The treasurer directs all of Missouri’s investments, but receives recommendations from the Missouri Investment Trust Board of Trustees.

“You want someone who will be vigilant in making sure the dollars coming into our state are adequate,” said Kathy Conley-Jones, of St. Louis, owner of Conley Financial Group.

She’s a Democratic member of the Investment Trust Board.

“Sometimes there’s not enough vigilance in making sure our money is not being given out frivolously,” she said.

Other duties of the treasurer include serving on three major governing boards, such as the Missouri Housing Development Commission, the Missouri State Employees’ Retirement System and the Board of Fund Commissioners, which manages state debt.

While both Mr. Zweifel and Mr. Lager promote fiscal responsibility, they’ve also identified other issues in their platforms, such as higher education affordability and access to health care.

While the treasurer’s role isn’t so direct when it comes to some election hot topics, Ms. Steelman said treasurers are able to influence state government in other ways. She pointed to former treasurers like Wendell Bailey and Nancy Farmer, who were able to use the office to initiate efforts to boost the economy and help parents afford college.

Mr. Bailey, a Republican, emphasized an increase in state investments in Missouri banks and businesses, while Ms. Farmer, a Democrat, started MOST, Missouri’s 529 College Savings Plan.

Ms. Steelman said she hopes the state’s next treasurer will continue her own initiative of keeping Missouri tax dollars from being invested in companies that sponsor or support terrorism.

“I have fears. I worry about that because it was very difficult to get in place,” she said.

Neither candidate has mentioned completely ceasing the practice.

Alyson E. Raletz can be reached

at alysonraletz@npgco.com.